The gamma subunit of the retinal cGMP phosphodiesterase (gammaPDE) acts as an inhibitor of phosphodiesterase (PDE) catalytic activity and mediates enzyme regulation by the alpha subunit of the GTP-binding protein transducin (alphaT). In this work, we describe a full length, doubly point-mutated gamma subunit, C68S, Y84C gammaPDE, which binds to PDE with increased affinity but has a decreased ability to inhibit the enzyme. Fluorescence studies monitoring the competition between wild-type gammaPDE and the C68S, Y84C gammaPDE mutant suggest that the mutant gammaPDE binds with high affinity to only half of the total sites occupied by wild-type gammaPDE. Competition studies between wild-type gammaPDE and the mutant further suggest that the wild-type protein is able to fully inhibit PDE activity even when the mutant gammaPDE occupies its high-affinity binding site on PDE. Taken together, our findings are consistent with a model in which there are two distinguishable binding sites for gammaPDE on the PDE enzyme but that only one of the two sites mediates PDE inhibition.